Are there any restrictions on Deck Medic's ability to engage in the Reserved Rights activities?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D.), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Deck Medic Businesses using the System and Licensed Marks outside your Operating Territory, as we deem appropriate and irrespective of the proximity to your Operating Territory; (b) acquire, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as, or similar to, your Deck Medic Business, and after such acquisition, merger or affiliation, to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to a the Franchised Business (but not utilizing the Licensed Marks) within your Operating Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to the Franchised Business, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate businesses that offer and sell products and services that are the same as or similar to your Deck Medic Business (but not utilizing the Licensed Marks) within your Operating Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the internet, catalog sales, telemarketing, or other direct marketing sales within or outside your Operating Territory; (e) use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business on behalf of customers of local, regional, and/or national corporate accounts such as residential property owners, commercial property owners, and insurance companies (referred to as "Corporate Accounts") within or outside your Operating Territory; and (f) use the Licensed Marks
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic and its affiliates retain exclusive rights to engage in specific activities without compensating the franchisee. These Reserved Rights include operating and franchising Deck Medic businesses outside the franchisee's Operating Territory, irrespective of proximity. Deck Medic can also affiliate with other businesses, even those offering similar services, and continue operating or franchising them, provided they don't use Deck Medic's Licensed Marks within the franchisee's territory. Deck Medic is also allowed to be acquired by or merge with businesses that offer similar services, even if those businesses operate within the franchisee's territory but do not use Deck Medic's Licensed Marks.
Deck Medic reserves the right to use its Licensed Marks and System to distribute approved services and products through alternative channels like the internet, catalog sales, or telemarketing, both within and outside the franchisee's Operating Territory. Additionally, Deck Medic can use its Licensed Marks and System to offer and sell approved services and products to Corporate Accounts, such as property owners and insurance companies, regardless of the franchisee's territory. These rights are reserved to Deck Medic on any terms and conditions they deem advisable.
These reserved rights mean that a Deck Medic franchisee's territory is not exclusive in several key aspects. Deck Medic can compete through other channels and corporate accounts, potentially impacting the franchisee's revenue. The franchisee receives no compensation when Deck Medic exercises these rights, which could create tension if the franchisee feels Deck Medic's actions are undermining their business. Prospective franchisees should carefully consider the implications of these Reserved Rights and discuss with Deck Medic how these rights are managed in practice to minimize potential conflicts.